Households in Luton South and South Bedfordshire, and across the UK, are set to benefit from immediate action to help with the cost of living thanks to first steps taken by new Labour Prime Minister Andy Burnham.
New announcements follow the Prime Minister’s commitment to the nation during his first speech on the steps of Downing Street to give people some breathing space and help with the cost of living. They include measures to cut the cost of electricity bills and bus travel for families in our area, as well as action to slash business rates for our valued pubs, social clubs, and live music venues.
Brilliant to see Andy Burnham and our new Chancellor John Healey hitting the ground running to deliver the kind of cost-of-living support people in Luton South and South Bedfordshire need.
On electricity bills, the new Government is tackling rising costs with a tax cut to remove VAT from 1st October in time to impact the next Ofgem price cap. This immediate action applies and is funded for this financial year through the cancellation of the Digital ID programme.
Cutting VAT on electricity bills is expected to take around £45 off the yearly Ofgem price cap. This is on top of the £150 removed through choices taken by the Labour Government at the last Budget. By targeting electricity costs, more people will be supported with rising bills and the government is helping to keep inflation down, especially benefiting those from the poorest households which spend a higher percentage of their income on energy bills.
Also great news that the £2 bus fare cap is set to return across England. I know that getting about for less can make all the difference for working families in Luton South and South Bedfordshire, so I’m very pleased to see this announcement which will come into effect from January. This also follows under 16s being entitled to completely free bus travel this August, opening up opportunities for spending time during summer.
And finally, after seeing many of our beloved pubs, clubs, and music venues struggle across the country, Andy Burnham has committed to cutting their business rates by 20% to increase support and ensure these valued businesses and social spaces can stay in our communities.
These plans are set to benefit around 3,000 venues across the East of England, saving the typical pub an estimated £1,100 in the next financial year and offering more certainty for businesses looking to invest, grow and create jobs – benefitting our high streets and wider local economies.
Any further action, including on funding for longer-term measures, will be taken at the Budget alongside an OBR forecast. All decisions at that point will continue to be funded and also consistent with the government’s fiscal rules.
This Labour Government is putting working people first and placing our core values at the centre of government.